Illinois’ bond rating reaches new low

From press release

Fitch Ratings recently downgraded Illinois’ general obligation bond rating from an “A” to a “AA-” as a “reflection of the significant scope of the budgetary problem and the failure of the state to enact a budget that fully addresses its current spending needs and its large structural budget deficit.”

The recent downgrading is a sign the financial community is concerned about the state’s financial condition. Years of borrowing without reducing spending have significantly contributed to the state’s financial woes. In fact, Fitch noted that Illinois “did not take actions to build its reserves or restructure its finances as its economy and the national economy grew over the last five years leading to this recession.”